by Sharon Jones
We’ve seen lots of technology that has revolutionized the business world. When we talk about the ‘business world’, we’re not speaking about a few industries here and there. Instead, we’re looking at basically every industry and enterprise out there. Some technologies, like 3D printing, are definitely transforming a number of industries. But, can you say that this tech is changing the face of the general business world? It’s up for debate, but the technology we’re looking at today can certainly claim to be revolutionary.
Yes, as the title says, we’re looking at data analysis software. This can also be called data analytics software, or simply data analytics. Either way, we’re referring to the same thing, and it has had a profound impact on how pretty much every industry goes about its daily work. Just how powerful is this software? Let’s take a look…
What is data analysis software?
Essentially, we’re referring to any software that helps you pour through vast amounts of data. It lets you identify patterns or search for very specific things. This software comes in so many varieties as you typically see different platforms made for different businesses. For example, you have data analysis for accountants, and you have a completely different one for marketers. Marketers use Adeverity identifies marketing analytics software while accountants use something totally different. While the platforms may differ in how they work and what they look at, the core premise remains the same.
So, how has this technology changed the business world? Some of you may already have a few ideas, but we can break it all down to the following points:
More accurate business decisions
Data has always been vital in making the correct business decisions. Let’s go back 50 years ago and imagine you run a small shop. You look through sales receipts and see that lots of customers are buying the same product. You use this data and buy more of that product, which leads to a boost in sales. Unfortunately, as a business gets bigger, it’s harder to manually sift through so much data to make the best decisions.
This is where data analysis software comes into play. We see examples of this throughout industries, but the oil & gas industry is perhaps the best one to use here. Drilling for natural resources is profitable, but only when you make the right decisions. How do you know the best places to drill to ensure you get as much of the resource as possible, making minimal impact on the surrounding area? You can’t possibly make an informed decision without analyzing the data. Software like PetroBase exists to help businesses do just that. In turn, you learn the best places to drill, making a much better business decision. It’s the same throughout the business world in various industries: good analytic tools help you avoid mistakes.
An example is the effective use of analytics in property management. Building analytics enables owners to utilize it to extract more excellent value from their properties. They have the ability to see how equipment is performing, get people data, and pinpoint inefficiencies.
Enhanced productivity/efficiency
This is an obvious benefit that’s impossible for anyone to dispute. Imagine a world without data analysis software - how much time would be wasted manually pouring through data sets?! You could argue that people wouldn’t bother doing it, but then we end up at the point above with poor business decisions!
The simple fact is that this software improves business efficiency by making the process of data analysis a lot quicker. Software can literally go through and analyze huge sets of data in seconds. For this example, let’s look at a marketing agency analyzing web traffic for a client. With no software, you’d have to manually find out where every visitor came from, what they did on the website, how long they stayed on there for, etc. It would be almost impossible and take absolutely ages. But, with data analysis, you see patterns instantly. If you use splunk professional services and locate your data server in the cloud, efficiency is even higher. You identify the main traffic sources, look at conversion rates, check to see if people all leave at a similar point, and so on. Now, more time is spent fixing a problem or enhancing a business instead of figuring out what’s wrong.
Make more money
Data analysis software also lets businesses make more money. Again, this relates to the idea of improved business decisions. You identify patterns in your company and use this data to influence sales.
For instance, picture an e-commerce business that sells clothes. The data suggests that you have a staggeringly high conversion rate on your online ads. As such, you take this information and invest more money in online ads. Perhaps you reduce your investment in other areas of marketing as you see they aren’t as profitable. Now, you can make more money by utilizing your best conversion source. A similar sort of approach can be seen in other businesses throughout the world.
Save more money
Likewise, data analysis software helps you save a lot of money. Effectively, you understand what works for your business and what doesn’t. In turn, you can save money by not spending it on things that aren’t beneficial.
The best example of this is a financial firm looking at a client’s financial data. With the right software, they can analyze all the money movements in the business. From here, they identify what’s generating income and what’s not. You might say to your client, look, you’re spending lots of money on this, but the data suggests it isn’t benefitting you in any way. It doesn’t contribute to your income, so what’s the point? Now, you can encourage them to reduce spending on that specific thing - or completely stop spending money - and they save money. In turn, saving money opens up a wider profit margin. When you combine this with data analysis to increase your income, it allows for much greater profits.
In conclusion, you can see four key areas where modern data analysis software has changed the business world:
Companies can make more informed decisions
Businesses can save time and be more efficient
You figure out how to make more money and boost your revenue
You learn how to spend your money more effectively and increase business savings
All in all, you’ll struggle to find an industry that isn’t calling upon this technology. It’s revolutionized the business world and is here to stay. If you run a small business and are looking to give yourself a boost, consider finding some analytics software today.